DEPARTMENT OFPRIMARY INDUSTRY AND RESOURCES

Approval notice and statement of reasons

Petroleum (Environment) Regulations (NT) (Regulations)

Interest holder

Petroleum interest/s

Environment management plan (EMP) title

EMP document reference

DPIR EMP assessment document reference

Regulated activity

Central Petroleum Mereenie Pty Ltd

Production Lease 3 (OL3)Environment Management Plan Palm ValteyGas Field, Proposed PV-13 Weil Site, PalmValley NT, June 2018V6DE2018/0001- 0034Drilling and the construction of a well

Was the regulated activity referred1 for

consideration whether an environmental impact

assessment or public environmental report wasrequired?

NoA letter was sent to the NT EPA on the 2January 2018 (E2018/0002-0009)recommending no referral was required underthe N01. The NT EPA did not requestassessment of these drilling operations in thereply received (E2018/002-0010)

Was an environmental impact assessment orpublic environmental report required?

Date EM P was first submitted under reg 6

Date further information was submitted under

reg 10, if applicableDate of resubmission notice under reg ll(2)(b),if applicableDate EMP was resubmitted under reg 11(3), ifapplicable

No

29 December 2017N/A

N/A

N/A

Date of decision

Decision maker°5L/,__0:^_ ,2018

Signature

Victoria Jackson, Executive DirectorEnergy Division, Primary Industry andResources

1 Approval notice1. The EMP is approved. reg ll(a)

1 This means a referral under the Environmental Assessment Act (NT) or the Environment Protection and Biodiversity

Conservation Act 1994 (Cth).

www.dpir.nt.gov.au•?• NORTHERN

(TERRJTQRY^fy GOVERNMENT'

2 Statement of reasons1. The EMP meets the approval criterion in reg 9(l)(a), because it contains all the reg 9(l)(a)

information required by Schedule 1 of the Regulations.

2. The EM P meets the approval criterion in reg 9(l)(b) for the following reasons: reg 9(l)(b)

a. The nature of the regulated activity is as follows:

i. The Application under s6 of the Petroleum (Environment) Regulations(Regulations) was the proposal to carry out a regulated activity. TheEnvironmental Management Plan titled, Environment Management Plan PalmValley Gas Field, Proposed PV-13 Well Site, Palm Valley NT, June 2018 proposedthe drilling and construction of one petroleum exploration well withinProduction Lease 3 (OL3). This is a basic drilling program to be conductedwithin the pre-defined and developed OL3. This is a common regulatedactivity and is well-defined in scope and purpose.

b. The scale of the regulated activity is as follows:

i. The scale of regulated activity is below that of common drilling applications.This drilling operation will be undertaken at Palm Valley Oil and Gas Field. Assuch many of the requirements for common exploration drill sites are notrequired. As an example, less upgrading of roads and infrastructure will berequired for this operation than a common exploration/appraisal drillingoperation as the Palm Valley Oil and Gas Field is a well situated anddeveloped operational field.

c. The level of detail and comprehensiveness of the application is appropriate. Thequality is satisfactory. The identification of the activity, environment,environmental risks and environmental impacts in a comprehensive andappropriate level of detail. The assessment of risks, environmental outcomes andperformance standards, implementation strategy, personnel, emergency

contingency plan, stakeholder engagement, legislative requirements, recording,monitoring and reporting, and notifications is detailed to a high level of qualityand applicability.

d. Having regard to the above, the information in the EMP is appropriate for thenature and scale of the regulated activity to which it relates.

3. The EMP meets the approval criterion in reg 9(l)(c) for the following reasons: reg 9(2)(a)

a. I have considered reg 4(d) (which requires that I give fundamental considerationto the conservation of biological diversity and ecological integrity) as follows:

i. I believe the information I have regarding the existing biodiversity andecosystems that are to be affected by the regulated activity; the effects thatare likely; and the mitigative measures reasonably available, is sufficient

ii. The regulated activity proposed involves little risk to the ecosystem in theOL3 area. The flora and fauna effected will have only a small effect in thearea and will not affect the overall biological diversity and ecological integrityof the area and ecosystem.

iii. The conservation of biological diversity and ecological integrity is vital to theachievement of ecologically sustainable development. Given the fundamentalnature of this consideration, I have given central importance to the

www.dpir.nt.gov.au•?• NORTHERN

»TERRJTORY"(^'(T GOVERNMENT

conservation of biodiversity and ecological integrity in weighing whether I amsatisfied the approval criterion in reg 9(l)(c) has been met.

iv. If carried out in accordance with the EMP, the risks of the regulated activityto the conservation of biological diversity is considered to be negligible.

v. If carried out in accordance with the EMP, the risks of the regulated activityto the conservation of ecological integrity is considered to be negligible.

b. I have considered reg 4(a) (which concerns the integration of long-term andshort-term economic, environmental, social and equitable considerations) asfollows:

i. The expression environment as defined in the Regulations relevantly includesthe well-being of humans, structures made or modified by humans, amenityvalues of an area and economic, social and cultural conditions. Therequirements under the Regulations includes stakeholder engagement and abroad consideration of the environmental impacts and environmental risks ofthe regulated activity in question. In making that broad consideration, thelong-term and short-term environmental impacts and environmental riskswere identified and assessed in the EMP. In this way, the concept ofintegrating long-term and short-term considerations has been given effect tobe implemented.

ii. In carrying out the regulated activity there is no particular contest betweeneconomic, social and environmental considerations that requires furthermention. It is noted that Palm Valley oil and gas field has been in operationfor more than 35 years (since 1982).

iii. Accordingly, I am satisfied that the concept of integration has been taken intoaccount.

c. I have considered reg 4(b) (which concerns the 'precautionary principle') asfollows:

i. The regulated activity does not pose a threat of serious or irreversibleenvironmental damage that warrants the application of the precautionaryprinciple.

d. I have considered reg 4(c) (that concerns the principle of intergenerational equity)as follows:

i. The environmental burdens of the regulated activity will notdisproportionately affect future or present stakeholders. Accordingly I do notbelieve that the carrying out of the regulated activity in accordance with theEMP would have an effect contrary to the principle of intergenerational

equity.

e. I have considered reg 4(e) (that concerns the promotion of improved valuation,pricing and incentive mechanisms) as follows:

i. In accordance with the 'polluter pays principle':

(1) The interest holder will cover the cost of remediation of the impacts ofthe regulated activity, as is set out in section 6.4, 12 and appendix 9 ofthe EMP.

(2) If the interest holder fails to remediate the impacts, a security is held bythe Minister which is co

•?• NORTHERNwww.dpir.nt.gov.au 9H^ TERRltORY

fi^T GOV'ERNMENf

f. An environmental report or statement has not been required to be prepared in reg 9(2)(b)relation to the regulated activity. Email confirmation with the NT EPA establishedthat no referral under the Environemtnal Assessment Act is required given thelow scale impact nature of the activity proposed. This indicates that the NT EPAwas not of the opinion that the regulated activity is reasonably considered to becapable of having a significant effect on the environment.

g. The existing environment along with its particular values and sensitivities is reg 9(l)(c)appropriately identified in section 7 of the EMP.

h. The anticipated environmental risks are appropriately identified in section 8 ofthe EMP.

i. I agree with the risk assessment set out in section 8 of the EMP, and to theextent I do not agree I have imposed a condition or conditions to address therelevant risk or risks. As such there are no conditions on approval of this EMP.

j. The anticipated environmental impacts are appropriately identified in section 8 ofthe EMP. I agree this is a reasonable identification of the environmental impactsof the regulated activity, and to the extent I do not agree I have imposed acondition or conditions to appropriately address the environmental impacts.

k. There are no environmental impacts or environmental risks relating to theproposed regulated activity which I consider to be unacceptable.

I. Overall, having regard to the above, I am satisfied that the EMP demonstratesthat the regulated activity is to be carried out in manner by which theenvironmental impacts and environmental risks are reduced to a level that is:

i. as low as reasonably practicable; and

ii. acceptable.

<S^ NORTHERNwww.dpir.nt.gov.au •3&TERRJTQRY

"<C(T GOVERNMENT'